The Woodlands, Texas - Huntsman Corp. announced 30 Sept that it has sued affiliates of Credit Suisse and Deutsche Bank, lenders who had signed agreements committing them to finance the merger of Huntsman and Hexion Specialty Chemicals Inc.
The move follows Huntsman winning its trial against Apollo Management LP in Delaware with a 29 Sept court ruling that Hexion must comply with the terms in its agreed merger with Huntsman.
The latest lawsuit, filed inMontgomery County, Texas, alleges that the banks were "conspiring with Apollo Management LP to interfere with Huntsman's previous merger agreement with Basell, interfere with a later merger agreement with Hexion and usurp for their own benefit substantial and valuable rights that belonged to Huntsman," Huntsman reported.
District Judge Fred Edwards of Montgomery awarded a temporary restraining order in favour of Huntsman, finding that, "irreparable harm would result if the banks were not immediately enjoined from terminating their financing commitment pending a full hearing on Huntsman's request for a temporary injunction," Huntsman said.
Judge Edwards ordered the banks must "not take any action that could reasonably be expected to materially impair, delay, terminate, or prevent consummation of the financing contemplated by the agreement between the banks and Hexion."
"We are grateful for today's decision by Judge Edwards, which comes on the heels of Vice Chancellor Lamb's decision yesterday to similarly enjoin Apollo and Hexion from further attempting to not comply with terms to which Hexion had agreed. We believe these two court rulings will allow the parties to move quickly to consummate the financing and the merger," commented Huntsman president and ceo, Peter Huntsman.